Bill Bonner and Doug Casey have been friends for almost 40 years… But they’ve never conducted an online event together before. That’s why we’re excited to announce the historic Legends of Finance Summit with Bill and Doug, which will launch at 8pm tonight, February 8th.

In this exclusive event, they’ll discuss Bill’s ambitious “Trade of the Century” – along with 6 different ways you can play it.

According to Doug, “Nobody cares about them.” And he’s absolutely correct.

Just look at this chart. It compares the S&P GSCI Total Return CME Index with the S&P 500. When this line is high, it means commodities are expensive relative to stocks. When it’s low, commodities are cheap relative to stocks. And that’s where we are today…

Commodities have never been cheaper relative to stocks.

That’s remarkable, but it’s not a good enough reason to buy commodities. You see, commodities have been cheap for years… and all they’ve done is keep falling.

So what’s changed? Simple.

• The U.S. dollar has tumbled in recent months…

This is a huge deal for the commodity market. And that’s because most commodities are priced in dollars.

Because of this, most commodities are inversely correlated with the dollar. They zig when the dollar zags.

You can see what I mean below. The blue line is DBC. The green line is the U.S. Dollar Index, which tracks the dollar’s performance against a basket of major trading-partner currencies.

As you can see, the weak dollar has given commodities a huge boost. DBC is up 13% since last July, while the dollar is down 6% over the same period.

But don’t worry if you missed out on this initial rally.

• The dollar is in the early innings of a major bear market…

Now, look, I realize some folks will have a tough time accepting this. Most Americans assume the dollar will stay strong forever. It’s the world’s reserve currency, after all.

But I’m not the only analyst calling for a weak dollar. 13D Research thinks the current dollar downturn could last seven years.

If you read Tuesday’s Dispatch, you know 13D is one of the world’s most exclusive research firms. Large money managers and hedge funds pay top dollar for its insights.

The dollar’s breakdown further confirms that capital-dispersion into the world’s longest-depressed markets and commodities is likely to continue to accelerate—possibly sharply—as the USD falls steadily in the coming months and years.

In other words, 13D expects the dollar to weaken even more, and that should trigger a sharp rally in commodities. It’s so confident in this call that it thinks commodities could be one of the best investments for years to come:

Markets and sectors that suffered the most during the previous deflationary-trends from 2009 to 2015 are likely to have some of the best relative-performance trends as the dollar’s bear-market unfolds.

In short, the weak dollar could be the catalyst that the commodity market has been waiting on for nearly a decade.

• So, consider speculating on commodities if you haven’t already…

Just be sure to act soon.

The rally we’re seeing in commodities could soon turn into a full-blown mania. 13D explains why:

This could create a self-fulfilling cycle of growth that attracts more capital away from the dollar and causes commodity prices to rise beyond expectations—a mirror image of the collapse of commodity prices beyond downside expectations when the dollar was strengthening.

You can easily bet on commodities by buying DBC or another major commodity fund.

For even more upside, consider buying shares of a large, diversified miner. These companies are leveraged to commodity prices. It doesn’t take a big move in commodity prices for their share prices to skyrocket.

Just understand that mining stocks are highly volatile, so treat them like a speculation.

Don’t bet more money than you can afford to lose. Use stop losses. And take profits when you get them.

This way, you’ll be able to capture big profits without exposing yourself to heavy losses.

Regards,

Justin Spittler
Tulum, Mexico
February 8, 2018

P.S. Casey’s Big Speculation editor and commodities expert David Forest says we’re on the verge of the next major commodity supercycle. He says the time to get involved in commodities is not when they’re already front-page news and prices have soared… It’s now.

This is the market we’ve all been waiting for… and we’re going to see some incredible moves in commodities in the next few years. To learn how you can position yourself to profit from this rare market phenomenon, click here to watch our brand-new video presentation.

Reader Mailbag

Sir, this was very good, with the exception of your statements that you are a libertarian (a form of government) and that you could live with a certain kind of government. The only government that would work is an altruistic dictatorship, and the problem with that is eventually that leader would die.

Fifty-six rich landowners didn't like paying taxes to England, so they hired a bunch of Scots/Irishmen and started a revolution. This government was corrupt the day it was started and has only gotten worse. But just like the 97% of people then who didn't want to get involved, the same holds true today. Anyway, I enjoyed your article.

– Robert

The article is spot-on. Just one suggestion. You state that you are an anarchist and that you "don’t believe in the right of the State to exist." But later in the article you state, “It implies a police force to protect you from coercion within its boundaries, an army to protect you from coercion from outsiders, and a court system to allow you to adjudicate disputes without resorting to coercion. I could live happily with a government that did just those things." Those thoughts are in opposition to each other. The first statement is anarchism, the second is not. Please reconsider your logic and conclusions. You can't have it both ways.